Emirates NBD H1 profits surge 30pc to $640m
Dubai, July 24, 2014
Emirates NBD, the largest bank in the UAE by total income and branch network, today reported a net profit growth of 30 per cent year on year for the first half to Dh2.350 billion ($639.7 million).
The strong operating performance was helped by solid revenue growth in both Retail Banking & Wealth Management and the Islamic banking subsidiary, Emirates Islamic, the bank said.
Total Income for H1 grew by 27pc to Dh7.04 billion whilst pre-impairment operating profit for H1 improved by 35pc to Dh4.91 billion, it said.
Total assets grew by 2pc to Dh348.3 billion in the first half of 2014. Customer loans increased by 1 per cent to Dh241.8 billion. Customer deposits also increased by 6pc to Dh252.9 billion over the same period. The bank’s advances to deposits ratio improved to 95.6pc from 99.5pc at the end of 2013. The bank’s NPL ratio improved further to 13.5pc whilst the Tier 1 ratio strengthened to 15.6pc.
Backed by this stronger liquidity and capital profile, on July 20, Emirates NBD was able to repay the remaining Dh4.8 billion Ministry of Finance deposits received in 2008, the statement said.
Group chief executive officer Shayne Nelson said: “During the first half of 2014, we have delivered another healthy set of results. This is driven by strong growth in both net interest income and non-interest income coupled with a firm control on expenses. I have focused management efforts on balance sheet optimization, diversification of income, addressing the legacy NPL position, improved capital efficiency and stronger liquidity. As a result the bank is in a healthier position than at the beginning of 2014 in each of these areas. I am confident that the bank will continue to deliver excellent service to our customers and superior value to our shareholders.”
Group chief financial officer Surya Subramanian said: “The bank has continued to deliver strong levels of operating profitability which is evident from the growth in both total income and pre-provision operating profit. Despite a competitive environment we have been able to maintain margins helped by growth in higher margin Retail and Islamic products, a more efficient funding base and a contribution from our Egyptian business. Costs remain firmly under control with a cost-to-income ratio of 30.3pc for the first 6 months on 2014, 4.2pc lower than the comparable period in 2013.”
Net interest income for H1 improved by 25pc to Dh4.559 billion from Dh3.661 billion in H1 last year. The improvement in net interest income is attributable to an improved asset mix due to Retail and Islamic growth, an improved funding mix as we continue to experience CASA growth and a contribution from our Egyptian business. - TradeArabia News Service